Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Homeless Services topic
No spam. Unsubscribe anytime.
City attorney: general fund cannot be given directly to nonprofit shelter; council seeks contractual and grant options
Summary
City legal staff told the council it cannot give general-fund dollars directly to a nonprofit shelter; the shelter's $15,000 request was disqualified by the administration for a late or incomplete application. Council asked legal affairs to draft sample contracts and pursue alternative funding paths.
During the legal-update portion of the July 14 meeting, the city attorney addressed the closure and recent funding questions surrounding the friend-of-the-father homeless shelter.
Attorney Schroeder told the council that state law and Department of Treasury rules prevent the city from directly giving general-fund dollars to a nonprofit organization. He said the shelter did apply for $15,000 in a grant program, but administration staff disqualified the application for being late or incomplete. Schroeder explained that government dollars can flow to nonprofits through community-development block grants and similar programs, but direct transfers of general-fund revenue are not allowed under the city's rules.
Schroeder and staff have drafted a sample contract that would allow the city to pay a nonprofit for services under a proper procurement and bidding process; that contract would include typical requirements such as insurance, indemnification and service standards. Schroeder emphasized that contracting for services may require procurement steps and, for amounts over purchasing thresholds, a formal bid process.
Several councilmembers expressed frustration that the administration did not coordinate earlier; Councilmember Lafferty urged legal affairs and administration to work together and return with options before cold weather. Council members also discussed countywide coordination and outreach to nonprofit partners to expand alternatives.
Council voted to receive and file the legal update and directed staff and legal affairs to continue work on contractual and grant-based ways the city could support shelter services in compliance with state law and procurement rules.
